Shipping costs and you: a beginner’s guide to the facts

By Oleg Mikhailenko
Published in Solutions
May 11, 2022
2 min read
How to check shipping costs in advance: the basic guide

Many sellers and customers alike are confused on how to estimate shipping costs. Especially when neither party particularly wants to pay the shipping fee, which adds dollars onto the end of the price that nobody wants to spend. Customers might feel like they’re getting a worse deal if forced to pay for delivery (which, by the way- delivery costs are the single biggest reason why customers abandon their shopping carts before completing a transaction!), but when sellers foot the bill, it adds another cost onto your bottom line, making prices more expensive across the board. It’s hard to decide who wins. Thankfully, there’s not only options to bring down average shipping costs across the board, but in the modern day it’s a snap to view estimated shipping costs before committing to a partnership or one-time contract.

So how much is shipping in the US? When it comes to freight shipping rates, if you answer the question of how much does shipping cost per pound, you’re looking at a price of approximately 7 dollars for a one-pound package through USPS. That’s obviously not the most cost-effective option in the entire world. Thankfully, there are other options. If you ask how much does it cost to ship through LTL, or less than truckload, prices drop to anywhere between 10 and 75 cents per pound, which is a phenomenal discount. Delivery suddenly becomes a major expense to something that’s far more reasonable and causes far fewer nightmares- provided you have the requisite freight quantities to make an LTL shipment worth your while.

What’s more, the type of courier service you choose makes a huge difference in the price. Economy ground, for instance, will cost a great deal less than sending your package on a commercial aircraft- and it’s often more environmentally friendly, to boot, meaning you get to save the planet and your wallet at the exact same time. It’s fairly quick, too, taking only a couple days longer than faster (and premium-priced) offerings. Even though customers expect two day fulfillment in this post-Amazon world, studies show that they’d rather have free than fast delivery by a small margin, meaning that if you absolutely must choose between the two, you ought to offer fulfillment that takes a bit longer for no additional cost.

In conclusion, there’s little need to worry about figuring out the price of delivery, because most any courier or fulfillment partner you choose will have software available that will present all the important numbers for your approval before anything is totally locked in. This means that in the 21st century, you no longer have to wait and worry in ignorance about whether shipping is going to totally destroy your bottom line. We live in a data and information-driven world, so any company that refuses to provide this necessary information to you up front is not a company worth dealing with.


Tags

#shipping#estimated#costs#fee#average#ship#estimate
Previous Article
E-Commerce and Warehousing: Best Practices

Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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